Closed NCUA Board Meeting Will Consider a CU Hopeful’s Criminal Past
The NCUA Board’s March 14 meeting agenda includes a proposed rule that could potentially lift or increase the current cap on fixed asset investments from its current 5% of shares plus retained earnings.
The rule, which garnered negative press when it was finalized in October 2010, will no doubt be of interest to some credit unions.
However, the board’s closed meeting agenda is more intriguing.
According to the agenda posted on the NCUA’s website, the board will address a request under Section 205(d) of the Federal Credit Union Act.
That rule, according to guidance published in the Federal Register by the NCUA in 2008, requires any credit union volunteer, employee or vendor who has been convicted of a criminal offense involving dishonesty or breach of trust, or has agreed to a pretrial diversion or similar program, to receive written permission from the NCUA Board before participating in the affairs of any insured credit union.
For certain crimes, the statute sets a 10-year ban, during which time the board may only approve the request with the permission of the individual’s sentencing court. Minor crimes that do not involve an insured depository institution are not covered by the rule.
The board will also consider a purchase and assumption request and a merger request during the closed meeting.
In addition to the proposed rule, the open meeting will include a request by $313 million Cinfed FCU of Cincinnati to convert to a community charter. According to its website, federal and county employees make up Cinfed’s core select employee group; the credit union also has several additional SEGs.
The open meeting will begin at 10 a.m. EDT in the NCUA’s Alexandria, Va. headquarters. The closed meeting will follow at 10:45 a.m.